Business Combinations

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Business Combinations

Note 2: Business Combinations

On August 10, 2012 , Bar Harbor Bank & Trust (the Bank), a wholly-owned first tier operating subsidiary of Bar Harbor Bankshares, completed its acquisition of the operations of the Border Trust Company (Border Trust), a state chartered bank headquartered in Augusta, Maine, by acquiring certain assets and assuming certain liabilities, including all deposits for a net purchase price of $133. This transaction represented a strategic extension of the Companys franchise with three branch locations located in Kennebec and Sagadahoc counties.

The Company has determined that the acquisition of the net assets of Border Trust constituted a business combination as defined by the FASB ASC Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values. Fair values were determined based on the requirements of FASB ASC Topic 820, Fair Value Measurements. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

The results of Border Trusts operations are included in the Consolidated Statements of Income from the date of acquisition. In connection with this transaction, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table.

Fair value of total consideration paid:
Cash consideration paid at closing to Border Trust	$	133
Fair value of identifiable assets acquired:
Cash and cash equivalents	$	1,330
Securities		3,537
Federal Home Loan Bank Common stock		770
Loans		33,606
Premises and equipment		563
Core deposit intangible		783
Other assets		540
Total identifiable assets acquired		41,129
Fair value of liabilities assumed:
Deposits		38,520
Borrowings		3,776
Other liabilities		477
Total liabilities assumed		42,773
Fair value of net identifiable assets (liabilities) acquired		(1,644	)
Goodwill resulting from transaction	$	1,777

Goodwill of $1,777 was recorded after adjusting for the fair value of net identifiable assets acquired. The goodwill from the acquisition represents the inherent long-term value anticipated from the synergies and business opportunities expected to be achieved as a result of the transaction. The core deposit intangible asset is being amortized over its estimated life, currently expected to be eight and one-half years.